Chicago-based healthcare fund management firm Birchwood Healthcare Partners has completed the initial closing of its 5V+ Seniors Healthcare Fund, the company announced Thursday.
The ultimate goal is to raise $100 million in equity assets under management. The close date for the second round is set for Oct. 1. The fund term is eight years, with a two-year extension.
The 5V+ Seniors Healthcare Fund is meant to provide investors an entry into the sector, with exposure to senior housing, transitional and long-term care, and healthcare services as well as active adult properties.
“Given attractive acquisition pricing, the current moment is an ideal time to deploy capital into the seniors healthcare market,” the company said in a press release.
The company “sees an unparalleled opportunity in the fragmented and misaligned seniors healthcare industry in today’s market. As government financial assistance programs worth over $272B wind down and capital providers prioritize quality, distressed assets will emerge, highlighting the need for experienced management,” according to the release.
Birchwood’s strategy for the fund is that it be used to meet the expected demand as baby boomers — those born between 1946 and 1964 — looking for senior housing. According to the 2020 Census, Americans aged 65 or more years account for 16.8% of the total population. By 2030, Birchwood said, the 65+ population is expected to grow by 31%.
